Inflation climbed to 3% in January, up from 2.5% in December, marking a 10-month high, according to the Office for National Statistics. The increase surpasses the Bank of England’s 2% target and could force businesses to raise prices.
East Midlands Chamber reports that inflation remains a significant concern for local businesses, with 60% expecting to increase prices, according to its Quarterly Economic Survey. Rising costs, including the upcoming National Insurance hike in April, add further strain.
The Bank of England’s response is now in focus, as the inflation spike may delay expected interest rate cuts in March. Economists still anticipate rates to fall later this year. Business leaders urge the government to provide economic stability and targeted support in its upcoming spending review.
